Newsline - June 10, 1998

The director of the
Federal Tax Service, Boris Fedorov, announced on 9 June
that he will "purge" his office of senior officials suspected
of corruption, Interfax reported. Fedorov also spoke of the
need to improve coordination between the tax police and
tax inspectorate and repeated the call for the creation of a
new "ministry of revenues," which would unite several
bodies now working independently. In a country of 150
million people, only 3.2 million tax declarations were
submitted last year, Fedorov said. He added that his first
targets will be rich Russians and foreigners. AW

MORE DETAILS EMERGE ON ARREST OF YURKOV

Fedorov's announcement followed the detention of Yurii
Yurkov, the director of Russia's State Statistics
Committee, on suspicion of distorting information about
major companies to help them avoid paying taxes. The
Prosecutor-General's Office later the same day announced
that more than 20 people were involved in the scheme,
including the head of the agency's data processing center,
Boris Saakyan. In a statement, the Prosecutor-General's
Office said both Yurkov and Saakyan have pleaded guilty to
the charges. More than $1 million was found in Yurkov's
apartment, while another $500,000 and a large amount of
jewelry were seized from the residences of the others
arrested. AW

KIRIENKO LAUDS ARRESTS, BUT RATING AGENCY
UNIMPRESSED

Prime Minister Sergei Kirienko said on 9
June that the arrests highlight government efforts to
battle economic crimes, ITAR-TASS reported. "I do not
think that today's arrest of Yurii Yurkov is a misfortune,"
Kirienko said, adding that the arrests were a combined
effort of the Russian security service and the Prosecutor-
General's Office. But the international rating agency
Standard and Poor's seemed unimpressed. Citing tax
problems among the reasons, the agency on 9 June cut
Russia's long-term foreign-currency rating to B+ from BB-.
Standards and Poor's said, however, that the long-term
outlook is stable. And it praised Russia's commitment to
low inflation, running at an annual rate of 12 percent. AW

TAX SERVICE PRESSED TO INCREASE COLLECTION

Russian Deputy Prime Minister Viktor Khristenko
announced on 9 June that the government has instructed
the Federal Tax Service to boost collections by 40 percent
in June, ITAR-TASS reported. Khristenko said the tax
service's work overall is "unsatisfactory" but added that
urgent measures implemented at the end of May will
greatly improve tax collection. AW

MORE MONEY FLOWS OUT OF COUNTRY

Russian security
officials said on 9 June that more than $25 billion has been
smuggled out of Russia illegally since the collapse of the
Soviet Union in order to dodge paying taxes, Interfax
reported. Most of the money has ended up in bank accounts
in Switzerland, Cyprus, Britain, and Israel, Interfax said.
Investigators said they have leads on $5 billion of the
smuggled funds. AW

WAS JOURNALIST'S MURDER POLITICALLY
MOTIVATED?

Leading media outlets, human rights
organizations, and some politicians are alleging that the
murder of Larisa Yudina in the southern republic of
Kalmykia, was politically motivated (see "RFE/RL
Newsline," 9 June 1998). The Kalmykian authorities,
however, deny that was the case. Yudina was co-
chairwoman of the local branch of the pro-reform Yabloko
movement and an editor of "Sovetskaya Kalmykia
Segodnya," the republic's only non-government newspaper.
That newspaper frequently published articles critical of
Kirsan Ilyumzhinov, Kalmykia's president and a wealthy
businessman . Following harassment by the local
authorities, it was forced to print outside Kalmykia. NTV
reported that demonstrators took to the streets of Elista,
Kalmykia's capital, on 9 June carrying banners that read
"Ilyumzhinov--who killed Yudina?" FF

SKURATOV TO HEAD PROBE INTO YUDINA'S SLAYING

Prosecutor-General Yuri Skuratov has agreed to lead the
probe into Yudina's murder. The State Duma backed
Yabloko's request that he head the investigation.
Meanwhile, Skuratov has responded by ordering a special
group of Moscow investigators and prosecutors to
Kalmykia and personally taking charge of the case, Interfax
and ITAR-TASS reported on 9 June. AW

MEDIA MOST OFFICIAL TO HEAD GAZPROM MEDIA

Gazprom head Rem Vyakhirev has said that Media Most
president Sergei Zverev will become his deputy, RFE/RL's
Russian Service reported on 9 June. Vyakhirev said Zverev
will head Gazprom Media, which is in charge of structuring
and developing Gazprom's numerous media assets.
"Kommersant-Daily" reported the next day that Viktor
Ilyushin, who until now headed Gazprom Media, will become
head of Gazprom's public relations and regional relations
department. Vyakhirev said Zverev was appointed as part
of a "reorganization" of Gazprom's media holding. Gazprom
owns a 30 percent share in NTV, Media Most's main
electronic media asset. Russian media said on 10 June that
Zverev will head the group of consultants advising former
Prime Minister Viktor Chernomyrdin in his bid to become a
member of the Duma before running in the 2000
presidential election. FF

RUSSIA DENIES S-300s ALREADY DEPLOYED ON
CYPRUS

Russian, Turkish, and Turkish Cypriot spokesmen
have all denied a Russian newspaper report that Russia has
already sent S-300 air defense missiles to Greek Cyprus,
the "Turkish Daily News" reported on 10 June. Yevgenii
Ananev, head of the Russian arms export monopoly
Rosvooruzhenie, has repeatedly said that the missiles will
be sent on schedule to Cyprus, in August. But "Segodnya"
reported on 9 June that the missiles have already been
shipped to the island. A Rosvooruzhenie spokesman said
the "Segodnya" report is "thoroughly baseless." Russian
Foreign Ministry spokesman Vladimir Rakhmanin said
Russia "is a reliable commercial partner" and will fulfill its
obligation to supply the S-300s on schedule, Reuters
reported. LF

DUMA POSTPONES START-2 HEARINGS UNTIL FALL

The Duma voted by 235 to 39 on 10 June to postpone
hearings on the START-2 nuclear arms reduction treaty
from June 16 until the fall, ITAR-TASS reported.
Communist Duma speaker Gennadii Seleznev has warned
that the hearings will be further delayed if U.S. President
Bill Clinton continues to pressure Russia to ratify the
treaty. Clinton has said he would prefer to visit Moscow for
a proposed summit with Yeltsin after START-2 has been
ratified. Retired General Albert Makashov, a communist
deputy who backed ultranationalist Liberal Democratic
Party leader Vladimir Zhirinovsky's proposal to put off the
hearings, said the Kremlin wants Duma deputies to convince
their colleagues to ratify the treaty. But Makashov added
that "it's Clinton who needs [the treaty ratified]." AW

RUSSIA CONTINUES CUTS IN TRADE MISSIONS

Russia
announced on 9 June that it will continue reducing its
overseas trade missions by consolidating offices in South
Africa, Mozambique and Nigeria, ITAR-TASS reported. In 40
countries, Russian trade missions, often separate entities
with their own support staff and facilities, have already
seen their operations cut as part of the government's
efforts to reduce spending. AW

RUSSIAN PATRIARCH NOT TO ATTEND TSAR'S
REBURIAL

After a meeting of the Holy Synod on 9 June, it
was announced that the Patriarch of All Russia and Moscow
Aleksei II will not attend the ceremony to bury the remains
of Nicholas II and his family on 17 July in St. Petersburg,
Interfax reported. Metropolitan Yuvenalii said the Church
still has doubts whether the bones are genuine. A
government commission said in January it is satisfied that
exhaustive tests conducted in Russia and abroad proved
the bones found in Yekaterinburg in 1991 were those of
Nicholas II and his family. The commission also agreed to
hold a funeral in the former imperial capital exactly 80
years after the family was murdered. Metropolitan
Yuvenalii also repeated calls for a symbolic memorial
grave to be set up as a place of repentance for the sins of
the communist era and of prayer for its victims. AW

SIBERIAN TEACHERS TAKE OFFICIAL HOSTAGE TO
DEMAND BACK PAY

ITAR-TASS reported on 9 June that
teachers in Siberia's Maiminsk region are holding a local
administration chief in his office to demand months of
unpaid wages. It said the teachers, who have barricaded the
office for two days, will not free the official until their
wages are paid. AW

NO PROGRESS IN NORTH OSSETIAN HOSTAGE CRISIS

The five Ingush bus passengers abducted in the North
Ossetian village of Zilgi and another six Ossetians
kidnapped the previous day (see "RFE/RL Newsline," 9 June
1998) have not yet been released, despite an agreement
between the premiers of the two republics that the groups
will be exchanged, "Nezavisimaya gazeta" reported. North
Ossetian President Aleksandr Dzasokov has proposed a
meeting with his Ingush counterpart, Ruslan Aushev.
Aushev, who has enjoyed good working relations with
Dzasokhov since the latter's election as president in
January, accused the North Ossetian leadership of being
unable to control the situation in North Ossetia. Russian
Deputy Prime Minister Khristenko, Federal Security
Service chief Nikolai Kovalev, and other leading law
enforcement officials arrived in the North Ossetian capital,
Vladikavkaz, on 10 June, ITAR-TASS reported. LF

KARABAKH PARLIAMENT REBUFFS PRESIDENT

The
parliament of the unrecognized Nagorno-Karabakh Republic
voted overwhelmingly on 9 June not to allow President
Arkadii Ghukasian to assume the duties of prime minister,
arguing that this would "disrupt the balance" among the
three branches of power, RFE/RL's Stepanakert
correspondent reported. Murad Petrosian, chairman of the
parliamentary Defense and Security Committee, argued
that Ghukasian's performance record since taking office
last September has been unimpressive and that therefore
it makes no sense to place any further "burden" upon him.
Petrosian also criticized "political games" by the Armenian
leadership "aimed at excluding any influence by Nagorno-
Karabakh on Armenian foreign policy." LF

ARMENIAN REVOLUTIONARY FEDERATION ISSUES
ULTIMATUM

Following the 9 June parliamentary session in
the Nagorno-Karabakh Republic, the Armenian
Revolutionary Federation's Karabakh organization issued a
statement criticizing the enclave's leadership for
deviating from the path of democracy and national unity,
RFE/RL reported. The statement called on Ghukasian to
take immediate measures to safeguard Karabakh's
"victories." Those measures included pre-term
parliamentary elections, elections to local government
bodies, a major government reshuffle, an active policy of
economic development, and the resettlement of the
occupied territories adjacent to Karabakh. LF

GEORGIAN OPPOSITION TO DEMAND PRESIDENT'S
RESIGNATION

Akaki Asatiani, parliamentary speaker
under Zviad Gamsakhurdia and leader of the opposition
Union of Georgian Traditionalists, has said his party will
begin collecting signatures to demand the resignation of
President Eduard Shevardnadze, Caucasus Press reported
on 10 June. Several other opposition parties have called
for Shevardnadze's resignation following the expulsion of
some 30,000--40,000 ethnic Georgians from Abkhazia last
month (see "RFE/RL Caucasus Report," Vol. 1, No. 15, 9 June
1998). Asatiani told "Nezavisimaya gazeta" in March that he
will contend the 2000 presidential poll rather than allow
the country to become "a battlefield between two former
Georgian Communist Party first secretaries," meaning
Shevardnadze and his successor, Djumber Patiashvili. LF

AZERBAIJANI PARLIAMENT PASSES CONTROVERSIAL
ELECTION LAW

The parliament has passed the law on the
presidential elections in the third and final reading, Turan
and Reuters reported on 9 June. The legislature will set the
date of the poll, due in October, only after its summer
recess, to the annoyance of international observers.
Although numerous amendments have been made to the
original draft on the recommendation of the OSCE,
opposition politicians still object that it is undemocratic,
pointing to the provision for deploying police and security
officials at polling stations. Azerbaijan Popular Front
deputy chairman Ali Kerimov, Musavat Party chairman Isa
Gambar, Democratic Party chairman Ilyas Ismailov, and
Liberal Party chairwoman Lala-Shovket Gadjieva have all
declared their intention to boycott the elections. A leading
member of the Movement for Democratic Reforms and
Democratic Elections told Turan that the movement will
stage demonstrations to protest the law. LF

EVACUATION OF BARSKOON AREA COMPLETED

Kyrgyz
Minister of Health Care Naken Kasiev told a press
conference in Bishkek on 9 June that the evacuation of the
Barskoon area, on the southern shore of Lake Issyk-Kul, has
been completed, RFE/RL correspondents reported. The
evacuation follows the spill last month of sodium cyanide
into a local river when a truck belonging to the Kumtor gold
mining operation overturned. Kasiev said the authorities
have temporarily relocated 4,800 people to the northern
shore of the lake. and that 5,349 people from the affected
area have sought medical help. Two experts from the World
Health Organization said at the same press conference that
the level of sodium cyanide in the water and ground is now
at acceptable levels and pose no danger to the population.
BP

NAZARBAYEV GIVES INTERNET INTERVIEW

Kazakh
President Nursultan Nazarbayev appeared on nationwide
television on 8 June to answer questions put to him via the
Internet. He said that $188 million has been spent on
government buildings in the new capital, Astana, and that
part of that sum was contributed by foreign firms. Some
$250 million has been spent on other structures.
Nazarbayev said Kazakhstan has a free press and that
journalists who feel that their rights have been violated
can take their case to court. The president praised the
work of Prime Minister Nurlan Balgimbayev's government,
noting that Kazakhstan now ranks among the leaders in the
CIS in terms of per capita foreign investment ($500) and
average monthly wages ($120). The economy, he added,
shows signs of improvement, despite declining world
prices for oil and metals (which are among Kazakhstan's
leading exports). BP

TURKIC SUMMIT IN ASTANA

The fifth Turkic summit
took place in the new Kazakh capital, Astana, on 9 June,
ITAR-TASS reported. The leaders reaffirmed their
commitments to cooperating in the fields of economics,
culture, and science. They also released a statement calling
on India and Pakistan to halt nuclear testing and sign the
Nuclear Non-Proliferation Treaty. BP

KARIMOV ON TURKIC UNITY, "EXTREMISTS"

Before
departing for Astana, Uzbek President Islam Karimov on 8
June said that past summits have shown "unhealthy rivalry
and competition." He argued that there should be limits to
Turkic unity, pointing to the example of to the Uyghurs in
China's Xinjiang Province: "Uyghurs...want Turkic-speaking
states to help them. If we support them, our relations with
the great China might be destroyed tomorrow." At a press
conference following the summit , Karimov spoke out
against religious extremism, ITAR-TASS and Interfax
reported. Karimov said the idea that an ideological vacuum
has been created in Central Asia following the break up of
the Soviet Union is "a myth." He also said the fight against
Wahhabism should not be regarded as a fight against Islam
in general. "Islam is the religion of 70-80 percent of
Uzbekistan's population...[and is] sacred to us." BP

KAZAKH DEMONSTRATORS ARRESTED

A protest march
to the new capital, Astana, by about 200 residents of the
southern city of Kentau was halted by police and National
Security forces on 8 June, ITAR-TASS and Interfax
reported. The group was protesting wage and pension
arrears. Most of the protesters were requested to return
home. However, 29 were arrested, of whom 14 are to
remain in detention for up to two weeks. BP

MINSK'S EVICTION ORDER PROVOKES INTERNATIONAL
PROTESTS

Following the U.S refusal to relocate its
ambassador from his residence at Drazdy, near Minsk, while
repairs are carried out to the compound (see "RFE/RL
Newsline," 9 June 1998), other countries are opposing
Minsk's eviction order. "These measures are unacceptable
and unbearable," Reuters quoted a French Foreign Ministry
spokeswomen as saying. France threatened to recall its
ambassador for consultations if Minsk carries through its
plan to expel diplomats from the compound. The Lithuanian
Foreign Ministry said the Belarusian authorities are
"outrageously violating international law," ITAR-TASS
reported. Russia also expressed concern over the dispute,
saying on 9 June that the decision should have been "taken
in accordance with international law," Reuters reported. JM

BELARUS SAYS PROTESTS ARE POLITICALLY
MOTIVATED

In a statement issued on 8 June, the
Belarusian Foreign Ministry apologized for any
"inconvenience" connected with the relocation of
ambassadors to other lodgings. The statement added that
the repairs are necessary because of the sharp
deterioration of the technical and sanitary conditions of
the buildings and utility systems. Speaking on national
television the next day, Foreign Minister Ivan Antanovich
said the Drazdy compound may wind up "floating in its own
sewage" unless the ambassadors vacate their apartments.
Antanovich added that foreign countries are overreacting .
"There is a tendency to give political coloring to this
[incident] on the part of those who are ready to view all
events in Belarus only from a political perspective," he
said. JM

LUKASHENKA GIVES AMBASSADORS ANOTHER WEEK
TO MOVE

The Belarusian Foreign Ministry on 10 June
issued a statement saying the relocation deadline has been
extended for a week to all 22 ambassadors after the
"personal intervention" of President Alyaksandr
Lukashenka, Reuters reported. The previous day, Minsk
notified the U.S. about that decision. Washington says,
however, that its ambassador will not be moving under any
circumstances, Reuters reported on 9 June. U.S. State
Department spokesman James Rubin stressed that the
eviction order is a "fundamental violation" of the Vienna
convention on diplomatic relations and is without
precedence since the end of the Cold War. "We have tried
hard to maintain a working relationship with Belarus.... But
now the government has made that task even more
difficult by this unnecessary, foolish, and illegal
provocation," he commented. JM

UKRAINIAN PARLIAMENT AGAIN FAILS TO ELECT
SPEAKER

The legislature's sixth attempt to elect its
speaker has been declared invalid owing to the lack of a
two-thirds quorum, Ukrainian Television reported on 9
June. Socialists/Peasants candidate Oleksandr Moroz
received 177 votes, while Hromada candidate Oleksandr
Pukhkal mustered only 30. As on previous occasions, the
Popular Democratic Party, the Popular Rukh, the United
Social Democrats, and the Greens refused to participate in
the vote. They are demanding a "package vote" on a
centrist speaker and two deputy speakers representing
the left- and right-wing parliamentary groups. Some
Ukrainian newspapers have dubbed the continued deadlock
in the Supreme Council a "farce" that is preventing
deputies from addressing the country's acute socio-
economic problems. JM

EU LUKEWARM TOWARD UKRAINE'S BID FOR
ASSOCIATE MEMBERSHIP

At the first session of the
Ukraine-EU Cooperation Council in Luxembourg on 9 June,
Ukrainian Prime Minister Valeriy Pustovoytenko requested
that Ukraine be granted associated membership in order to
pave the way for a full-fledged membership in the future,
Ukrainian Television reported. But according to Reuters,
the EU reacted unenthusiastically to Ukraine's association
bid, saying it is "premature" to look further than the
current accord on Ukrainian-EU cooperation and
partnership, which took effect on 1 March. "I'm sure that in
the medium term Ukraine will arrive at that point which in
our view, at the present time, it has not arrived at yet,"
Reuters quoted EU Commissioner for Foreign Relations
Hans van den Broek as saying. JM

ETHNIC RUSSIAN ACTIVISTS CHARGED IN ESTONIA

Yurii Mishin, the head of the Russian Citizens Union of
Estonia, has been charged with organizing protest rallies
without obtaining permission from the authorities, BNS
reported on 9 June. The charges are linked to
demonstrations last fall that began protesting the high
cost of living and concluded by denouncing the Estonian
government. Last week, similar charges were filed against
two elderly ethnic Russian women. Estonian police have
said they realize legal proceedings against the three could
be "politically sensitive." But they add that charges have to
be brought after investigators concluded laws were
violated. JC

EU WELCOMES LATVIAN LAWMAKER'S APPROVAL OF
CITIZENSHIP LAW CHANGES

The EU on 9 June issued a
statement welcoming the Latvian parliament's decision on
4 June to approve in the second reading amendments to
the citizenship law proposed by the Latvian government.
The statement, which was made by the current holder of
the EU presidency, Britain, on behalf of the union, added
that reform of the citizenship law is a "key criterion" for
Latvia to begin EU entry talks. JC

POLAND'S COALITION SEEKS SUPPORT FOR 15
PROVINCES

Prime Minister Jerzy Buzek met with
President Aleksander Kwasniewski on 9 June to seek
Kwasniewski's support for 15 provinces (see "RFE/RL
Newsline," 8 and 9 June 1998), "Rzeczpospolita" reported.
Both Buzek and Kwasniewski declined to comment after the
meeting, but Kwasniewski's lawyer said the president will
veto the bill unless it provides for 17 provinces. Later the
same day, Buzek and Solidarity leader Marian Krzaklewski
tried to persuade Solidarity Electoral Action senators to
introduce an amendment to the administrative reform bill
that would increase the number of provinces from 12 to 15.
The ruling coalition has 59 senators in the 100-seat upper
house but is afraid some of them may not endorse the
amendment. JM

SOCIAL DEMOCRATS STILL AHEAD IN CZECH OPINION
POLLS

A public opinion poll conducted by the Institute for
Public Opinion Research shows the Social Democratic Party
(CSSD) still ahead less than two weeks before the
elections. The CSSD received 22.5 percent backing,
followed by Vaclav Klaus's Civic Democratic Party (15
percent), Pensioners for Secure Life (9 percent), the
Communist Party of Bohemia and Moravia (7.5) percent, and
the Freedom Union and the Christian Democrats (7 percent
each). The far-right Republican Party gained only 4 percent
support, which would mean it would fail to pass the 5
percent threshold for entry to the parliament, CTK
reported. MS

HAVEL WANTS CORRUPTION INVESTIGATION INTO
CSSD TO CONTINUE

Presidential spokesman Ladislav
Spacek on 8 June told journalists that President Vaclav
Havel will ask the counterintelligence service to continue
its investigation into the so-called "Bamberg affair," CTK
reported. After studying a preliminary report, Havel said
he believes the case could be one of "provocation by
forces that aim at destabilizing the country," Spacek said.
The investigation focuses on allegations that CSSD leaders
met with a Czech-born entrepreneur in Switzerland three
years ago and promised him a top economic and state
position in exchange for preferential loans to finance the
CSSD's 1996 election campaign. MS

SLOVAK PARLIAMENT CANCELS PRESIDENTIAL
ELECTION ROUND

The parliament on 9 June canceled a
new round of presidential elections after the only
candidate, the independent Vladimir Abraham, withdrew
from the race, RFE/RL's Bratislava bureau reported.
Parliamentary chairman Ivan Gasparovic said another round
will be held on 11 July. MS

CALLS FOR INTERVENTION IN KOSOVA INCREASE...

U.S.
President Bill Clinton said on 8 June that he is determined
to prevent "a repeat of the human carnage...and ethnic
cleansing" that took place in Bosnia, an RFE/RL
correspondent in Washington reported. Clinton said he has
authorized "accelerated NATO planning" to deal with the
Kosova crisis. U.S. Defense Secretary William Cohen said
NATO feels "an increased sense of urgency" to deal with
the conflict. "The Guardian" reported on 9 June that NATO
planners in Brussels are considering the use of air strikes
to force Serbia to halt its offensive in Kosova. Dutch
Defense Minister Joris Voorhoeve called for rapid NATO
intervention. But his German counterpart, Volker Ruehe,
was quoted by the "Frankfurter Allgemeine Zeitung" as
saying military action should be a last resort. NATO
defense ministers will meet in Brussels on 11 June to
discuss options for dealing with Kosova. A spokeswoman
for the UN High Commission for Refugees (UNHCR) has
called for "vigorous action" to stop the violence. PB

...WHILE RUSSIA, CHINA OPPOSE FOREIGN ACTION

Russian President Boris Yeltsin and his defense minister,
Igor Sergeev, said in Bonn on 9 June that they oppose any
NATO involvement in Kosova, ITAR-TASS and dpa reported.
Yeltsin said at the end of a two-day visit to Germany that
foreign intervention could cause the conflict to spread to
neighboring countries. He suggested that he would meet
with Yugoslav President Slobodan Milosevic to help
resolve the crisis. Yeltsin spokesman Sergei
Yastrzhembskii said such a meeting is "quite possible." In
Beijing, the Chinese Foreign Ministry said it also opposes
foreign intervention in Kosova. Both Russia and China could
veto a UN Security Council resolution authorizing the use
of force in Kosova. PB

OFFENSIVE NEAR ALBANIAN BORDER INTENSIFIES

Serbian forces on 9 June continued to spray areas of
western Kosova with heavy mortar and artillery fire,
Reuters reported. UN and Western officials reported that
several villages along the Albanian border between the
Kosovar villages of Djakovica and Decan were under attack.
The pro-Albanian Kosova Information Center said armed
ethnic Albanians are putting up "strong resistance" to the
attacks. The upsurge in fighting caused the flow of
refugees, which had stabilized in recent days, to increase, a
UNHCR official said, adding that some 65,000 people have
been displaced because of the fighting over the past 10
days. "Koha Jone" reported that only 8,500 out of an
estimated 15,000 refugees in Albania have registered with
the UNHCR as of 9 June. The daily added that most of the
unregistered refugees are leaving the northern
mountainous areas for the central and southern Albanian
plains and larger cities, where many of them have
relatives. PB/FS

YUGOSLAV DEFENSE COUNCIL MEETS IN BELGRADE

Yugoslavia's Supreme Defense Council, chaired by
President Milosevic, convened in Belgrade on 9 June to
discuss the situation in Kosova, Tanjug reported. The
council announced that the army and police are in complete
control of the border and have successfully taken
"measures that guarantee the safety of the Federal
Republic of Yugoslavia." It was the first meeting of the
council since the Kosova crisis erupted in February. The
council included Serbian President Milan Milutinovic,
Montenegrin President Milo Djukanovic, Yugoslav Premier
Momir Bulatovic, and Defense Minister Pavle Bulatovic. In a
separate statement, Yugoslav officials denounced the new
economic sanctions leveled against the country, calling
them "strange and unreasonable." PB

BALKAN FOREIGN MINISTERS ISSUE STATEMENT ON
KOSOVA

Meeting in Istanbul, the foreign ministers of six
Balkan countries issued a statement calling for the
"immediate cessation of excessive use of force," the
"Turkish Daily News" reported on 10 June. The ministers--
from Albania, Bulgaria, Greece, Macedonia, Romania, and
Turkey--decided to issue a separate statement after
Yugoslav Foreign Minister Zivadin Jovanovic refused to
allow any mention of Kosova in the conference's final
declaration (see "RFE/RL Newsline," 9 June 1998). Greek
Foreign Minister Theodore Pangalos, however, said he does
not think the recent economic sanctions imposed on Serbia
are the best means of resolving the crisis. He added that
third countries suffer greatly when sanctions are imposed.
PB

COURT FINDS CROATIAN JOURNALIST INNOCENT

Davor
Butkovic, the former editor of the Croatian weekly
"Globus," on 8 June was found innocent of charges that he
slandered an alleged criminal. Mladen Naletilic, currently
under arrest, accused Butkovic of slander for writing that
he was "a most notorious warlord." The judge ruled that
Naletilic created that image for himself during the Bosnian
war. In other news, the eastern Croatian town of Darda was
awarded $14 million from the U.S. to rebuild homes and
improve its infrastructure. The town was chosen for the aid
because it has successfully promoted reconciliation
between Croats and Serbs and has a multi-ethnic local
administration. PB

COUNCIL SAYS BOSNIAN PEACE PROCESS MUST
ACCELERATE

The Peace Implementation Council, charged
with overseeing adherence to the Dayton peace accords,
has bemoaned the slow pace of change in Bosnia-
Herzegovina, Reuters reported on 9 June. The council,
which was meeting in Luxembourg, is composed of
delegates from more than 60 countries and international
institutions. In a statement, it said that top priorities for
Bosnia in 1998 are an accelerated return of refugees,
police and judicial reform, economic integration, and fair
parliamentary elections in September. The council
reaffirmed the right of its high representative, Carlos
Westendorp, to decree certain reforms In Bosnia-
Herzegovina. PB

LEADING ALBANIAN BUSINESSMAN KIDNAPPED

Four
unidentified gunmen kidnapped Koco Dado, the head of
Albania's Association of Businessmen, in Tirana on 8 June,
"Gazeta Shqiptare" reported on 10 June. Tirana deputy
police chief Ilir Cano told the daily on 9 June that the
kidnappers have not yet demanded a ransom. He added that
the kidnapping may be linked to Dado's recent appearances
on television as part of an initiative to collect aid worth
some $90,000 for Kosova refugees. FS

PREMIER SAYS FOREIGN SERVICES SEEK TO
'DESTABILIZE ROMANIA'

Radu Vasile told Pro TV on 9
June that "some foreign services are interested in
Romania's destabilization." He said these attempts are
taking place "at key moments in the country's evolution"
and cited the unsubstantiated rumor that a nuclear
accident has taken place at the Cernavoda power station.
He said the rumor was circulated last month at the time
President Emil Constantinescu was visiting Canada and
seeking to negotiate the financing of a second reactor at
Cernavoda. Vasile said one can expect an "intensification"
of the "destabilization attempts" in the fall, when NATO will
again discuss the possibility of its further enlargement. MS

HUNGARIAN CHURCH LEADERS DEMAND RETURN OF
CONFISCATED CHURCH ASSETS

An ecumenical gathering
of representatives of the Hungarian Reformed Church and
Hungarian Roman Catholics on 9 June demanded that the
authorities stop dragging their feet over the return of
Church assets confiscated by the Communists, Mediafax
reported. The gathering also backed the demand of the
Hungarian Democratic Federation of Romania (UDMR) to set
up a separate Hungarian-language university in Cluj. UDMR
leaders are meeting with coalition partners on 10 June in
an attempt to find a solution to the demand. Meanwhile, the
Constitutional Court has ruled that government regulation
No. 22 was unconstitutional. That regulation made possible
bilingual signs in localities where minority populations
exceeded 20 percent. It was rejected by the Senate
because it also allowed former Premier Victor Ciorbea to
continue in office as mayor of Bucharest. The Chamber of
Deputies has yet to debate the issue. MS

PERSONNEL CHANGES IN MOLDOVAN PRESIDENTIAL
STAFF

President Petru Lucinschi on 9 June appointed
former Minister of Internal Affairs Mihai Plamadeala to the
position of Supreme Security Council secretary, BASA-
press reported, citing a press release of the presidential
office. Gheorghe Carlan, who until now held that post, has
been appointed presidential counselor and head of the
negotiating team with the Tiraspol separatists, replacing
Anatol Taranu. Taranu's replacement has been repeatedly
demanded by the separatists, who claimed he was
"uncompromising." MS

MOLDOVAN COALITION'S FUTURE UNCERTAIN

The
parliamentary groups of the Democratic Convention of
Moldova (CDM) and the Party of Democratic Forces (PFD) on
9 June warned in a joint statement that the future of the
ruling coalition is uncertain. The two groups say that Prime
Minister Ion Ciubuc and parliamentary chairman Dumitru
Diacov are "mishandling" the negotiations on the
appointment of deputy ministers and directors-general of
ministries and are refusing to implement an agreement on
those appointments that was reached at the time of the
coalition's formation. Under that accord, for every two
officials representing the CDM and the For a Democratic
and Prosperous Moldova Bloc (PMPD), one official should
represent the PFD. The two parties accuse Diacov and
Ciubuc of attempting to achieve a "privileged status" for
the PMDP, RFE/RL's Chisinau bureau reported. MS

BULGARIAN, MACEDONIAN FOREIGN MINISTERS
DISCUSS BILATERAL RELATIONS

Nadezhda Mihailova
and her Macedonian counterpart Blagoj Handziski, meeting
at a Balkan conference in Istanbul on 8 June, said they are
determined to solve bilateral problems, BTA reported. The
two ministers also discussed the situation in Kosova and
pledged to contribute to solving the conflict. They
exchanged draft documents on bilateral relations, which
are to be signed during a visit by Macedonian President
Kiro Gligorov to Bulgaria at an unspecified date. At a
meeting with Albanian Foreign Minister Paskal Milo, the two
chief diplomats agreed that Mihailova will pay an official
visit to Tirana in November. MS

VERDICT AGAINST UKRAINIAN NEWSPAPER
THREATENS PRESS FREEDOM

by Tiffany Carlsen and Katya Gorchinskaya

A Kyiv court last week ordered the opposition daily
"Kievskie Vedomosti" to pay libel damages totaling 5
million hryvni (more than $2 million) to an ally of President
Leonid Kuchma. If unable to pay, the newspaper will have to
close down.

But there has been almost no reaction from the
journalistic community. Only a few voices have been heard
about the case, which many consider to constitute yet
another assault on press freedom by the government.

"There has been no reaction from any sort of
journalists' union and that is very surprising," said
Volodymyr Mostovy, editor of the weekly "Zerkalo Nedeli."
"This is precisely the moment that solidarity between
journalists should be manifested through a statement that
speaks out against such actions."

Mostovy said that the Starokyivsky District Court's
ruling was a "purely political action directed at closing the
newspaper" by forcing it into "an unsustainable economic
condition."

That echoed the comments made last week by Yevhen
Yakhunov, editor of "Kievskie Vedomosti," who also said
that the court decision was "a political action."

But these were isolated comments. Last weekend,
several journalists were given awards by Kuchma in a
ceremony at Mariyinsky Palace marking Press Day.
"Freedom of speech helps the development of democracy,"
the president said, adding that journalism is a "serious
weapon" in politics but should be used with "objectivity and
independence."

"Kievskie Vedomosti" is standing by its series of
reports in which it alleged that Interior Minister Yuri
Kravchenko bought a luxury $115,000 Mercedes with money
from a fund for the families of slain policemen. Kravchenko
filed suit last year after the newspaper had first printed
the allegation. The daily plans to appeal the ruling.

Four month ago, another Kyiv opposition daily,
"Vseukrainskie Vedomosti," was forced to shut down after
a court ordered it to pay 3.5 million hryvni in damages to a
pro-Kuchma businessman and politician. At that time,
however, many journalists openly argued that the
government was trying to gag the opposition in the run-up
to the March parliamentary elections.

Now, Yakhunov is saying, newspapers have not rushed
to the defense of "Kievskie Vedomosti" for purely
commercial reasons. "Mass media are separated into
different camps," he said. "Even those on friendly terms
with us might not support us because we are competitors.
However, I want to warn them that the repression has
started."

"Kievskie Vedomosti" attorney Viktor Nikazakov sees
apathy as the main reason for silence. "Those newspapers
that might want to scream about the decision don't do it
because they know it won't accomplish anything," he said,
adding that "more and more newspapers are working for
the president in any case."

Foreign observers say that the case highlights a
troubling pattern of opposition newspapers falling afoul of
the authorities.

In two recent cases, the newspaper "Polityka" had its
bank accounts frozen by a local tax administrator for
failure to submit documents in time. The newspaper
"Pravda Ukrainy" faced similar close scrutiny from
government inspectors.

Tim O'Connor, Kyiv resident adviser of ProMedia, a
U.S.-financed non-governmental organization supporting
international press reform, says that cases like the
"Kievskie Vedomosti" one are "worrisome because they
show how one-sided the libel and defamation laws are in
Ukraine." He added that loopholes in the Ukrainian press
law are partly to blame, since plaintiffs are currently not
required to prove any actual damage in court. He also said
there is no legal distinction between press scrutiny of a
private citizen and public official. "Certainly public
officials should be scrutinized closely, no matter what
country you're in," he commented.

Irina Polykova, regional office director of the
European Institute for the Media, said that Ukraine lacks
both courts and lawyers experienced in handling press
freedom issues. And she criticized the fact that legislation
places no limit on the amount of damages a plaintiff can
seek from a media outlet.

"Kievskie Vedomosti" attorney Nikazakov said more
public pressure should be put on lawmakers. "The media
should press the parliament to change laws so that they
defend themselves against high-ranking officials," he said.
"The parliament probably would pass this kind of law just
to spite the president."
The authors are Kyiv-based RFE/RL correspondents.